Consumer Agency Gains, But Foes Remain

The Obama administration’s plan for a new regulatory agency to protect consumers has cleared a major legislative hurdle – but it still faces strong opposition from Republicans, business interests and some federal regulators.

The Consumer Financial Protection Agency would centralize oversight of credit cards, mortgages and other financial products. It was approved Thursday by the House Financial Services Committee, but only after changes that diluted the proposed agency’s power. For example, most automobile dealers and 98 percent of the nation’s banks would be exempt from its authority.

The bill now goes to the full House. In the Senate, the Banking Committee is working on a financial reform bill that is expected to include its version of the agency.